Prabhudas Lilladher is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 484 in its research report dated July 27, 2019.
Prabhudas Lilladher's research report on ICICI Bank
ICICIBC earnings of Rs19.1bn were much ahead of our estimate (PLe: Rs13.0bn) mainly on lower provisioning as slippages came in lower at Rs27.8bn (1.9% of loans) while PCR improved by 82bps QoQ to 71.5%. Core PPOP continues gain strength with growth of 21% YoY despite slower fee income and on stress side over BB & below is gradually moving down which is currently at 2.5% (from 3.0% in Q4). With pick-up in business with high yielding loan share & lost cost funding should help NIMs improvement, while normalizing credit cost should help strong recovery in earnings.
We retain BUY with TP of Rs484 (from Rs475) based on 2.0x Mar-21 ABV & SOTP with risk-reward being favourable.
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